House Rentals or Buying a House: Consider the following factors

House Rentals or Buying a House: Consider the following factors

House Rentals or Buying a House are two sides of the housing coin.

At some point in your life, you’re going to decide between renting or owning a house. Depending on your circumstances, renting a house or owning might be the best option for you. Both options offer various advantages and disadvantages. Here are the pros and cons of owning against renting a house:

Pros of renting a house

Flexibility: Renting a house is ideal for people who require a short term living arrangement in a region or country. Renting allows flexibility to move once your payment is up. It’s a good option for students living close to school or people who do not intend staying in a place for too long or would likely move around a lot because of work.

Also, it’s easier to move out at any time when you’re a tenant. You’re not saddled with the responsibility of looking for a new tenant or buyer. That becomes the job of the house owner.

Affordability: Compared to buying a house, renting is pretty affordable. Especially when you’re renting in an area you can’t afford to buy property in. For instance, you could afford to rent in Banana Island although you might not be able to own a house there. Well, depending on why you need to live in a certain location, renting, in this case, is an ideal choice.

Greater financial freedom: As a tenant, once you pay your house rent for a period of a year or a few months, you can invest any additional income into other ventures like investing in the stock market or even saving towards buying your own home.

 

housing-deficit-in-nigeria

LekkiVale Estate features

 

Read more: Don’t buy a House without considering these factors

Cons of renting a home

Bound by agreement: As a tenant, you’re set bound by an agreement to a landlord. The terms of this agreement are should be thoroughly looked into in order to avoid situations where a landlord, for instance, increases rents at the middle of the year without prior notice. Also, depending on your terms of the agreement, you might be restricted when it comes to making changes in the house like repainting or renovating without the consent of the landlord.

No wealth creation opportunity: Renting offers no return on investment, there’s no wealth creation on your part. Other than the service of having a roof over your head, the property remains that of the owners and so, once your rent is up, the house ceases to be yours.

In the same line, while renting a property, you have no control over annual rental fluctuations. The house owner can decide to increase rents due to one reason or the other and you would have no choice but to succumb or look for another alternative.

No guarantees: As a tenant, there’s no guarantee that your lease will be renewed once your rent expires. Unless perhaps you have an agreement with the house owner. The house owner can decide to sell off the property or bring in new tenants. As such, you might be left stranded when your rent is up.

Pros of owning a home

Security: Owning a home gives you a feeling of satisfaction and security. You have one hundred per cent creative rights over your property and can decide to do with it whatever you want without any restrictions placed on you.

Owning a home is an ideal choice for a stable family who aren’t intending to move around any time soon. For instance, a young growing family has the added advantage of settling into a region of their choice, where they can raise their kids and send them to schools around without the fear of losing their home at any time.

Financial freedom: As a homeowner, you can decide to sell your property at any time or use it as collateral for a loan. Owning a home also gives you the added advantage of value appreciation. Owning a house in Lagos, for instance, can give you an ROI of up to 40% in two years depending on the location, allowing you to make a profit should you choose to sell.

The sense of responsibility: Owning a house is one of the common hallmarks of success. There’s a certain level of confidence and fulfillment that comes with owning a home, its overwhelming sense of responsibility flows into every other aspect of your life.

Generational Wealth: Owning a house gives you the opportunity to build generational wealth. A house will likely stay up long after you’ve passed on and could serve as a harbour for wonderful memories for you and your family. The value appreciation on the property can be transferred from one generation to another.

 

Also read: How to effectively transition from renting to owning a house

 

Cons of buying a home

Huge financial commitment: Buying a home requires a huge financial commitment. It might require you to suspend other commitments until the acquisition process is completed. In addition to the acquisition costs, you would require additional funds to maintain a house like renovating, paying for damages, insurance etc.

Mobility restrictions: As a homeowner, you would be more compelled to live in a location longer than you may want to. You might not be able to relocate at will suppose a job opportunity comes up.

The risk of selling at a loss: As a homeowner, you can run the risk of not making any or very little profit through a resale. Instances of this scenario are not common but depending on certain economic factors like a recession or the location your property becoming less desirable could lower the value of your property. Regardless of where you’re in life right now, at some point, you might consider buying a house for yourself or your family.

 

 

At Sevic PDC, we are dedicated to developing comfortable and affordable homes, perfect for you and your family. All our properties are offer premier amenities like:

  • 24/7 electricity supply and treated water supply
  • Completely finished, contemporary apartments.
  • Recreational Park for kids and adults (clubhouse, gym, basketball court)
  • Top notch security and access roads

All our properties have valid documents and are free from litigation issues. Call us today at 0908123456409095757575. Send us an email at info@sevicpdc.com to speak to our real estate investment expert on the best plan that can fit seamlessly into your budget and guidelines into giving you the type of home or real estate investment that you want.

You can also chat with us on WhatsApp: 09095757575 09081234564

How to effectively transition from renting to owning a house

How to effectively transition from renting to owning a house

“Owning a home is a keystone of wealth — both financial affluence and emotional security.” – Suze Orman

 

Putting a roof over your family’s head is one of the most important things to do and if you’re like most Nigerians, you’re probably renting and you’re probably looking to transition from renting to owning a house. The most ideal way to provide shelter is to own your home because renting is basically making use of space for a specified time period.

There are cases where renting is ideal but if you intend on settling in a state or a particular location for at least five years, then buying your own home is a better and in the long-run a cheaper deal. The primary reason for this is, houses generally appreciate in value with time while money spent on rents can’t be recovered or attract any value appreciation.

 

Here are a few tips to help you shift from renting to owning a home:

  1. Keep a leech on your savings

One of the main reason most people don’t own homes is, they’re unable to afford it. There’s really no beating around the bush when it comes to buying a house, if you can’t pay a down payment, your finances are probably not stable enough to own a home. However, your financial state is never permanent. Through discipline to save more or seeking extra ways of earning more money, you can buy your dream home.

Here are a few tips to get you started:

  • Set precise saving goals.
  • Take note of all expenses including the seemingly minute ones.
  • Take up extra work to earn more.
  • Consider cutting down on the amount you currently spend on rent. For a family looking to buy a house, renting a relatively cheaper house would help save extra cash needed for your down payment.

 

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  1. Keep Your mind on your Long-Term vision

Thinking long-term helps you make better decisions as most of your energy would be directed at attaining your end results. While you save towards your goal, devote your time into making all the necessary decisions to help you choose which house to buy. Keep in mind the following:

Choose your location carefully. It’s always better to move to a developing area rather than a declining or saturated area. The reason is, a developing area offers better economic opportunities and would likely attract high-value appreciation compared to an area that has reached its peak. A good example of this is, deciding to buy a house in Surulere or Sangotedo. All things being constant, a house in Sangotedo is more likely to attract higher value appreciation than a house at Surulere. The rule of thumb is, when purchasing a home, access its profitability suppose you resell it in a couple of years.

In addition, consider other long-term issues like schools available in the area, hospitals, shopping centres, location in relation to traffic, all these would help you assess how convenient it would be for your family down the line.

 

Read more: What you need to know about mortgage systems in Nigeria

 

  1. Budget for additional Total Expenses

A down payment or monthly mortgage payment isn’t the only things you’d need to consider when buying a house. Buying a house is committing yourself to cater for extra expenses like renovations, maintenance, insurance, taxes and utility bills.

In order not to end up overwhelmed with bills, ensure you make room for extra expenses.

Rule-of-thumb: Assume that you’ll spend 1% of your purchase price annually on maintenance.

Why? Your house has a lot of moving parts and unlike renting, where you can call the landlord, you’re your own landlord. Of course, this is just an estimate. How much you’d really spend on maintenance and bills depend on factors like; how much you consume in terms of utility rates, climate, age and the condition of the property.

 

  1. Renting is much more expensive than buying a home

In the long-run, the total cost of renting would likely be significantly higher than buying or even mortgaging. In Lagos, for instance where housing prices are high, the cost of renting for five years or even less than can be used as a down payment for a house (depending on the neighbourhood).

Quick tip: calculate how much it would cost to pay a monthly mortgage on the average home in the neighbourhood of your choice in comparison to your current rent payments.

Of course, the best option will be to purchase outright if you’re financially capable rather than spread payment, as that in itself attracts some amount of interest. Buying upfront also helps you make substantial profits suppose you turn around and decide to sell the property.

 

 

Since you’re here …

We’ve got the best deal for you. Buying a house is a huge decision to make. There’s a lot to choose from and a lot of uncertainties and paperwork, not to mention they cost m. Let’s narrow it down for you. Rosewood Residences located in the heart of the Lekki Peninsula encapsulates all it takes to give you a home. We’ve aligned all the factors necessary to give you the type of comfort and luxurious lifestyle you deserve:

  • A home located within the urban area of Lekki
  • 24/7 electricity and water supply
  • Ample, underground parking space
  • A valid C of O

What’s more, we’ve got all these for you at the most affordable price possible. Call in today at 0908123456409095757575. Send us an email at info@sevicpdc.com and let us give you the investment of a lifetime. So, why should you bother calling us today? …Because we understand what Home means to you.

You can also chat with us on WhatsApp: 09095757575 09081234564

Also read: What makes LekkiVale Estate stand out from other estates

Mortgage

Mortgage

Buying a home for your family is one of the benchmarks for success in our society. What makes buying a home harder is usually the lump sum required and the lack of knowledge of how the mortgage system works in Nigeria. Cost is the single biggest factor for the low house purchases among middle-income earners, as they would need to save for long periods to have enough money for an upfront payment. This’s where mortgages act as a better subsidy.

A mortgage lender loans a good part of the cost required to pay for a house, which you will have to pay back with interest over an agreed period of time. On the flip side, if for unforeseen circumstance reasons you’re unable to pay the mortgage bank when due, your home can be taken through a process called foreclosure.

The mortgage system is typically favourable for homeowners who don’t have sufficient cash on hand to pay for a house upfront. However, taking up a mortgage typically takes you a step closer to home ownership compared to perhaps, renting.

 

mortgage-in-nigeria

 

There are different types of mortgage loans and depending on what plan best suits your budget and the amount of payment period, you should carefully assess which is best before opting for one. Mortgage loans are characterised by their time span, usually from 5 to 20 years in Nigeria.

 

Before opting for a mortgage loan, ensure you understand the following factors:

  • Consider your budget and monthly income. It’s preferable to have a relatively stable source of income. This is to prevent overstretching yourself to keep up repayments.
  • Keep in mind other than the cost of the owning a home, you’d need to cater to additional expenses like household bills, utility bills, insurance and maintenance.
  • Mortgage lenders will usually request to see proof of your bank statement to assess your income flow and expenses, and if you have any debts. This assessment is simply to prove you can keep up with repayments plus interest rates.
  • The mortgage lender can decide to refuse to offer you a mortgage if they think you can’t afford to keep up with repayments.

How Does The Process Work?

When compared to regular loans, mortgages typically have lower interest rates. Typical mortgage interest rates in Nigeria range between 7-25%. The lender requires the potential buyer to have a certain percentage of the total amount needed for the purchase available, called equity. This percentage should range between 30-70% of the total cost of the home. Ideally, your mortgage payments shouldn’t require above 25-30% of your monthly income to enable stay afloat with other bills and engagements.

As mentioned above, the length of time required to pay back the loan is important. In most cases, the maximum period of time given is 20 years.

 

Read more: What it takes to turn your house into a Home 

 

What Documents Do You Need?

The documents needed to get your mortgage loan to approve vary from institution to institution. They include the following:

  • A comprehensive statement of account (12 months or more)
  • Employment and confirmation letter (if employed)
  • Certificate of Incorporation of business (if in business)
  • Nationally accepted means of identification
  • Utility bills
  • Application form (provided by mortgage institution)
  • Original title deed of property (To confirm that property is not in contest)

In Nigeria, taking mortgage loans is increasingly becoming popular and it’s one of the surest ways to owning your own home. However, before considering a mortgage, keep in mind the following questions:

  • Is this the right time for me to buy a house?
  • What kind of property do I need? And where?
  • Do I need to take out a mortgage?
  • Can I truly afford to buy a house on a mortgage?
  • How much do I want to borrow and for how long?
  • What are the pros and cons of taking out a mortgage compared to renting?

Also read: How to effectively transition from renting to owning a house

 

 

Since you’re here …

We’ve got the best deal for you. Buying a house is a huge decision to make. There’s a lot to choose from and a lot of uncertainties and paperwork, not to mention they cost more. Let’s narrow it down for you. LekkiVale Estate located in the heart of the Lekki Peninsula encapsulates all it takes to give you a home. We’ve aligned all the factors necessary to give you the type of comfort and luxurious lifestyle you deserve:

  • A home located within the urban area of Lekki
  • 24/7 electricity and water supply
  • Ample parking space
  • A valid C of O

What’s more, we’ve got all these for you at the most affordable price possible. Call in today at 0908123456409095757575. Send us an email at info@sevicpdc.com and let us give you the investment of a lifetime. So, why should you bother calling us today? …Because we understand what Home means to you.

You can also chat with us on WhatsApp: 09095757575 09081234564

Houses for sale: What to consider before buying

Houses for sale: What to consider before buying

The Ultimate Home Buyer’s Checklist

Thinking of buying a home? Your first home perhaps, here are the factors to consider before buying a house for sale.
Buying a house is a big deal but after the initial excitement passes, it might seem a little overwhelming. There are factors you need to take into consideration to ensure you make the best deal available to you. Below is a list of factors you can consider to make your home buying process effortless and exciting.

Find a Real Estate Agent

You’ve probably never considered this but before making a move to buy a house, getting a professional real-estate agent decreases the burden of finding the right house in a favourable location at the right price. Getting an efficient real-estate agent can save you tons of energy and time, which would have been otherwise spent tracking down information.

Even better, you can seek the services of a real-estate company, who owns or market real-estate properties. There are a good number of reputable real-estate firms you can work with here in Lagos.

Here are some tips to help you get started:

  • Choose a real-estate firm that has built a reputable brand name.
  • Choose a real-estate agent or company who’s willing to share all the information you need in detail.
  • Work with a firm or agent you’re comfortable with. Sometimes trusting your guts when it comes to choosing who to work with counts.

 

Read more: Renting versus Owning a Home: Consider the Following Factors

 

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Get Your Finances in Order

One of the main reasons for buying a house is such a huge deal is largely due to the financial commitment required. Once you’ve decided to purchase a house, determine which mode of payment suits your budget. If you’re going for a full down payment (which is typically cheaper comparatively) bargain for the best deal possible.

Find out if there are any other fees required other than the cost stated.
If you’re opting for installment payments, get your account in order and set aside funds for prompt payment.

It’s quite common for people to borrow funds to pay for a house. Before opting for this option ensure you’ve taken into consideration the interest rates and how much the loan actually costs.
Most real estate companies offer flexible payment options for up to 12 months. Seek out options that suit your budget.

 

Also read: Why Real Estate is The Safest Investment Option In Nigeria

 

Determine the type of house you need

Let’s face it when it comes to making home buying decisions; what we want, what we need and what we can afford are three different things. First, identify what you need to make your home comfortable.

Here’s a head start:
  • Constant treated running water
  • Constant power supply
  • Security and access control
  • Proximity to the workplace, hospitals, schools, etc.
  • Is the property on a flood plain?
  • Available rooms

The list varies depending on your specific needs. Answers like, how big your family is, would determine the number of rooms you should be looking for.
Questions like, how long would you like to live in a particular area? What is your necessary level of privacy? Are you buying as a means to invest? All these and more, ensure the house you’re planning to buy has all it needs to become home for you.

 

More related content: Top ways to save and invest in real estate.

 

Title of the property

Make sure the property you’re looking to buy has the appropriate land documents. Ask for copies of the documents from your seller or realtor and make proper inquiries. Needless to say that, you shouldn’t pay for any property in Lagos without verifying the authenticity of its land documents.

 

 

Let’s Get You The Perfect Home

We understand choosing the right home means so much to you. Here’s a house you’ll absolutely love.
LekkiVale Estate located in the heart of the Lekki Peninsula encapsulates all it takes to give you a home. We’ve aligned all the factors necessary to give you the type of comfort and luxurious lifestyle you deserve.
Every aspect of LekkiVale Estate radiates a lifestyle of sheer relaxation and soft elegance, well deserving for you. From the designed buildings to our unmatched amenities offering:
• A central connection of treated running water
• 24 hours centrally generated power supply
• Well paved roads and covered drainage
• Top notch 24 hours security and access control
• Sewage treatment
• Ample parking lot
• Green areas and Kids Park
• Swimming pool
• Clubhouse

For more detailed information about getting the best real-estate deals in Lagos, call us today at 0908123456409095757575. Send us an email at info@sevicpdc.com and let us give you the investment of a lifetime.

You can also chat with us on WhatsApp: 09095757575 09081234564

 

Real Estate Investing

Real Estate Investing

It’s another new year, 2019!

After all the hullabaloo the reality of the New Year quickly sets in. Usually, there’s a tendency to overestimate what you can do in a year financially and underestimate what you can do in a month. With the current turn of events in the economy coupled with the unpredictable political situation; there’s heavy speculation about everything. Here are six things to do before making investment decisions in 2019.

 

Also read: How The 2019 Elections Affects Your Real Estate Investment At Ibeju-Lekki 

1. Draw a personal financial road-map

One of the primary reasons why most goals fail is the lack of tactical planning. Before making any investment decision, critically analyse your financial capacity. Decide the results you would want to see in the future and state exactly what you must do to achieve your written goals. That’s right, make sure you write your target figure.

Next, draft a financial road-map and identify your risk tolerance level. Most investment opportunities offer you a chance to either generate profits or risk a loss. However, there are certain investment ventures that are less risky – this is where you should focus on. Get your facts down and follow through on your road-map.

2. Evaluate your capacity in taking on risk

All investments involve some degree of risk. Investments like purchasing securities like stocks, bonds, or mutual funds entail a greater amount of risk. You could lose some or all your money and in the same way, you could gain a whole lot of money. On the other hand, the risk of investing in real estate is relatively lower and the turn over takes a longer time period. However, real-estate investments serves as an ideal long-term investment that can yield sustainable profits.

 

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Read more: Why Real Estate is The Safest Investment Option In Nigeria

3. Create and maintain an emergency fund.

Life is highly unpredictable. While is optimistic to hope for the best, it’s wise to have a contingency plan. Always put money aside to cover emergencies like a sudden illness, family issues, unemployment and any other issues that might arise.

4. Diversify your investment portfolio

The ideal way to go about investing is to diversify your investments into short-term and long-term investments. Each category has its advantages and disadvantages. For instance, investing solely in the money market is appropriate for short-term financial goals, but the main concern here is the risk of inflation. Meanwhile, long-term investments offer a substantial way to secure retirement funds, while achieving your long term financial goals. You can hardly go wrong investing in real estate especially in Lagos state. The key to investing in real estate is to ensure factors like the location of the property, the title of the property, growth potential and zonal laws are taken into consideration.

5. Stick with Your Plan

Rule of thumb: always Buy Low and Sell High. The number one goal for investing is always to make a profit. Ensure you shift your money to the most profitable ventures. It’s important to do your research and determine which venture is profitable. Evaluate your investment portfolio regularly and identify which ventures are more profitable. Many financial experts recommend evaluating your investment ventures every six or twelve months.

6. Avoid circumstances that can lead to fraud

Scam artists follow the headlines too. That’s how they know how to trick you. Avoid quick money schemes (Ponzi schemes) and business deals that seem fraudulent. Don’t be easily cajoled by highly publicized potential investors and “opportunities” that may sound legitimate. Ask questions. Take out time to carry out your research and seek answers from unbiased sources before investing.

7. Save more to invest more

To invest more, you need to save more. Saving more entails cutting back on unnecessary spending. it’s critical to consider the volatility of the economy in making your investment decisions.

 

 

Since you’re here…

We’ve got the best real estate deals for you that can guarantee up to 400% return on investment in less than five years.  All our properties are strategically located and have valid  land documents (valid C of O.)

Get the best land for sale deals in Lagos. Call us today on 0908123456409095757575. or send us an email at info@sevicpdc.com and we’ll give you the real estate investment of a lifetime. If you aren’t looking to invest in real estate, I’m sure you know someone who’s interested. Pass this information on!

You can also chat with us on WhatsApp: 09095757575 09081234564

 

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